Engagement Letter

March 12, 2021
Glorious Corporation
Gov. Lim Avenue
Zamboanga City, Philippines
To the Board of Directors or the appropriate representative of senior management:

You have requested that we audit the financial statements of Glorious Corporation, which
compromise the balance sheet as of December 31, 2018, and the income statement, statement of
changes in equity and cash flow statement for the year ended, and a summary of significant
accounting policies and other explanatory notes. We are pleased to confirm our acceptance and
our understanding of this engagement by means of this letter. Our audit will be conducted with
the objective of our expressing an opinion on the financial statement.
Auditor’s Responsibilities
We will conduct our audit in accordance with Philippine Standards on Auditing (PSAs). Those
Standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatements. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
Because of the test nature and other inherent limitations of an audit, together with the inherent
limitations of any accounting and internal control system, there is an unavoidable risk that even
some material misstatements may remain undiscovered.
In making our risk assessments, we consider internal control relevant to the entity's preparation
of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control.
In addition to our report on the financial statements, we expect to provide you with a separate
letter concerning any material weaknesses in accounting and internal control systems which
come to our notice.
Management's Responsibilities
Our audit will be conducted on the basis that management and where appropriate, those
charged with governance, acknowledge and understand that they have responsibility:
a. For the preparation and fair presentation of the financial statements in accordance with
Philippine Financial Reporting Standards.
In preparing the financial statements, management is responsible for assessing the

Company's ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
b. For such internal control as management determines is necessary to enable the

preparation of the financial statements that are free from material misstatement, whether
due to fraud or error; and
c. To provide us with:
1. Access , on a timely basis, to all information of which management is aware that is

relevant to the preparation of the financial statements such as records , documentation
and other matters;
2. Additional information that we may request from management for the purpose of the
audit;
3. Unrestricted access to persons within the Company from whom we determine it
necessary to obtain audit evidence; and
4. As provided under Circular No. 2015 -40, provide us with copies of the IC Reports of
Examination.
Management's failure to provide us with the information referred to above or access to persons
within the Company may cause us to delay our report, modify our procedures, or even terminate
our engagement.
Management is also responsible for adjusting the financial statements to correct misstatements
identified by us and for affirming to us in its representation letter that they believe the effects of
unrecorded misstatements are immaterial, individually and in aggregate, to the financial
statements as a whole.
Management is responsible with the oversight of those charged with governance, to determine
that the Company's business activities are conducted in accordance with laws and regulations. It
is also the responsibility of management and those charged with governance to identify and
address any non-compliance with applicable laws or regulations. Management is responsible for
communicating to us on a timely basis, to the extent that management or those charged with
governance are aware, all instances of identified or suspected non-compliance with laws and
regulations:
a. Involving financial improprieties,

b. Having a direct effect on the determination of material amounts and disclosures in the
Company's financial statements and/or
c. That do not have a direct effect on amounts and disclosures in the financial statements,
but compliance with which may be fundamental to the operations of the Company's
business, its ability to continue its business, or to avoid material penalties.
Management must communicate the foregoing instances regardless of the source or the form
in which the instances of identified or suspected non-compliance may have been discovered or
communicated to them, (including, without limitation, instances identified by "whistle·
blowers ," employees, former employee s, analysts, regulators or others), and provide us full
access to information and any internal investigations related to the m. Such instances include
manipulation of financial results by management or employees, misappropriation of assets by
management or employees, intentional circumvention of internal controls, inappropriate
influence on related party transactions by related parties, intentionally misleading JNC, or
other identified or suspected non-compliance with law and regulation, including fraud that
could result in a misstatement of the financial statements or otherwise affect the financial
reporting of the Company. If the Company limits the information otherwise available to us
under this paragraph (based on the Company's claims of attorney/client privilege, work
product doctrine, or otherwise), the Company will immediately inform us of the fact that
certain information is being withheld from us. Any such withholding of information could be
considered a restriction on the scope of the audit and may prevent us from opining on the
Company's financial statements; alter the form of Report we may issue on such financial
statements; or otherwise affect our ability to continue as the Company's independent auditors.
The responses to those inquiries, the written representations, and the result s of our procedures
comprise evidence on which we will rely in forming an opinion on the financial statements.
Other Service Providers
In the event we refer you to another service provider, we will not receive any compensation,
directly or indirectly, for making such referral.
Fees
Our estimated fee for the services previously described will be PHP 198,000 plus out-of-pocket
expenses. We will submit our bill monthly as services are performed, and it will be due and
payable upon receipt. If an extension of our services is requested, we will discuss our fee
arrangements at that time. Plan implementation as well as plan monitoring and updating, if
needed, are separate engagements. If you choose one of these additional services, a separate
engagement letter will be provided. These services will be billed separately.
Concluding Remarks
We will be delighted to discuss this letter with you at any time. If the foregoing is in accordance
with your understanding, please sign one copy of this letter in the space provided and return it to
us. The additional copy is for your files.
This engagement may be terminated without penalty or further obligation except for the payment
of fees for services performed and expenses incurred prior to termination.
We agree that we will not assign this engagement without your prior written approval.
If we can be of assistance to you in any other way, please do not hesitate to contact us. We look
forward to helping you develop and maintain a sound, business-like approach to your personal
financial affairs.
We thank you for the opportunity to be of assistance to the Company.
Very truly yours,
JOSHUA NAVARRO COMEROS

Partner
For and on behalf of JNC Auditing Firm
Agreed and accepted by:
Glorious Corporation
___________________
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What are the responsibilities of the auditor?

What are the responsibilities of management?

March 12, 2021

To the Board of Directors or the appropriate representative of senior management:

In preparing the financial statements, management is responsible for assessing the

b. For such internal control as management determines is necessary to enable the

1. Access , on a timely basis, to all information of which management is aware that is

a. Involving financial improprieties,

Other Service Providers

We thank you for the opportunity to be of assistance to the Company.

Very truly yours,

JOSHUA NAVARRO COMEROS

Agreed and accepted by:

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